Dow champions circular economy solutions

MUSCAT, DEC 4

Jim Fitterling, Chairman and CEO of Dow, delivered a compelling address at the GPCA conference, articulating a forward-looking vision for the chemical industry while emphasizing the importance of sustainability, innovation, and collaboration. In his remarks, Fitterling skillfully bridged the past, present, and future of the industry, offering a roadmap for transformation in the face of unprecedented challenges.

Fitterling opened by acknowledging Dow’s nearly 50-year history in the Middle East, a region where the company has forged deep ties and invested over $30 billion in joint ventures. This commitment, he noted, has enabled Dow to train thousands of local operators and engineers, laying a strong foundation for the company’s extensive footprint in the region. From packaging to energy markets, Dow’s state-of-the-art facilities, including the innovation center in Saudi Arabia, exemplify how partnerships and investments drive progress.

This history underscores the symbiotic relationship between the region’s growth and Dow’s advancement. “Thanks to our collaboration with GPCA and our industry peers,” Fitterling emphasized, “the future is bright.”

Fitterling identified the energy transition as one of the dual mandates shaping the future of the chemical industry: decarbonizing manufacturing while meeting increasing customer demand. He underscored that, despite global decarbonization goals, fossil fuels remain a central part of the energy landscape. With energy consumption projected to double or triple by 2050 due to innovations like AI, reconciling energy demand with sustainability is a complex but critical challenge.

Dow’s strategic response, branded “Decarbonize and Grow,” is a clear roadmap for achieving carbon neutrality while driving profitability. Fitterling highlighted the Alberta Path2Zero project as a prime example of this vision in action. The initiative involves creating the world’s first net-zero ethylene and derivatives complex, powered by hydrogen and advanced carbon capture technologies. By 2030, Dow aims to grow its earnings by $3 billion while reducing greenhouse gas emissions by 5 million metric tonnes annually.

Fitterling pivoted to the topic of plastics, a cornerstone of modern life. He outlined the essential role plastics play in sectors like transportation, healthcare, and food security, while candidly addressing public concerns about plastic waste. With demand for plastics continuing to rise, the challenge lies not in the material itself, but in its disposal and recycling.

“Globally, less than 10% of plastic is recycled,” Fitterling noted, emphasizing the need for systems to capture and repurpose plastic waste. While some advocate for production bans, he argued that such measures are neither realistic nor effective. Instead, Dow is championing circular economy solutions, aiming to transform 3 million metric tonnes of waste into renewable products annually by 2030. From advanced recycling facilities in the US and Europe to waste collection initiatives in Kenya, these efforts underscore Dow’s leadership in this space.

Fitterling underscored the critical role of governments in enabling innovation. He called for an “all of the above” energy strategy, advocating for the inclusion of natural gas, hydrogen, and nuclear alongside renewables. He cited Dow’s collaboration with X-energy to deploy small modular nuclear reactors in Texas as an example of how advanced technology can drive decarbonization while meeting industrial needs.

However, Fitterling also highlighted the barriers posed by inconsistent or overly prescriptive policies. “When policymakers decide one type of energy is right and another is wrong,” he warned, “progress stops.” He urged governments to adopt flexible, market-based approaches to incentivize sustainable investments.